Business

Thousands of women have launched virtual storefronts in Indonesia

Thousands of Indonesian women are launching a new breed of mom-and-pop shop — one that's entirely contained within a phone or tablet.

A startup called Slingshot lets anyone apply to launch a three-dimensional virtual storefront with the country's biggest retailer, Alfamart.

Through micro-franchise agreements, owners can stock their shelves and display racks with any assortment of items from Alfamart's inventory, which includes household wares, clothing and groceries. Sales are made in-person only, and the wares are shipped upon purchase from the shopping chain's warehouses.

The set-up is supposed to add a social touch to the online shopping experience and provide a more comfortable setting for people who still prefer real-world stores to the internet. It's also meant to be accessible with the minimum possible initial investment.

A screenshot of the inside one augmented reality store.

Image: slingshot

The company claims 7,000 people have now signed up in the eight months since it launched, and 60 percent of them have stayed active users. All but two or three percent happen to be women.

Slingshot CEO Daniel Surya says the predominance of female users is a function of prevailing cultural norms that often make it difficult for women to start their own businesses.

The company was one of five startups chosen to represent the country at the South by Southwest festival in Austin this week, during which it will announce a global expansion targeting other emerging markets.

Most of the businesses operate on the same sort of scale as a tupperware party — customers are usually neighbors, acquaintances or anyone else the store owner might come across in a social setting.

The stores also have an augmented reality component, where users can decorate a tiny scale model of a building.

Image: instagram:aditafebriyanti

Surya said the product is most popular among mothers looking to bring an extra stream of household income. He says a lot of the transactions take place in social settings, like among mothers waiting for kids after school or during neighborhood get-togethers.

Some of the more prolific of the business owners seem to be bypassing the storefront altogether and coordinating sales to a wider audience through social media.

The company plans to roll out a feature soon that will let owners mix in goods of their own into their inventories alongside those supplied by Alfamart.

The idea is to eventually get to the point where the storefronts are more akin to shops on sites like Etsy with the opportunity for owners to launch their own products on the back of their franchise.

From Alfamart's perspective, the benefit comes not just through the added sales but also through valuable word-of-mouth marketing intrinsic to the model.

As it strikes out into new markets in the coming months, it will look to make similar partnerships with local retailers.

The business model latches onto what's seen as one of the most appealing business prospects of virtual and augmented reality — the ability to create virtual showrooms in which to sell things with the same intimacy and accessibility of a brick-and-mortar setting without the burdensome costs or logistical restrictions.

The product as it is now is far from the most advanced example of this practice, but Surya said it was designed with wide accessibility in mind among people who might not have the latest gadgets.

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